Taking a decision to start a new business is perhaps the most exciting part and the beginning of the whole business process. But this is the first step. It is surely an important aspect that you take time to thoroughly examine the idea in details about the ways to earn your future livelihood. In fact, it is not the persons who run the business, the product, the marketing or the employees who make the business success; it is mostly the quality and profitability of the business idea behind the company. When you go into the business, you have to look at the idea or opportunity driving it from a different angle than your assumption. Most people wrongly select a business based on one of the two personal biases
- It is my familiar business: – The hairdresser opens a saloon, a car mechanic opens a repair garage and likewise. Generally, it may be misleading. They are probably looking at the job, not at the business. Just because you are a good car mechanic, does not mean that you know how to run a car garage. It may be that a garage may not run successfully in your area.
- You may be fond of or love a specific product: – Just because, you like something does not necessarily mean that the business related to this thing will be a success. This especially valid for a new entrepreneur. It is important that the products and services of the business are liked by your customers, not by you.
Some specific features that may contribute to the success of your business are.
- Your product and services have repeat consumption: – It is a more important aspect of long term success. In other words, the business owner must focus on acquiring the customer once but making a profit from him repeatedly over a long time. The faster is the consumption cycle, more profitability is likely to generate.
- High Profit Margins: – In a new business cash flow as an important parameter. You may not compete with “we are cheaper” label in the marketing platform. If you aim to work with low margins and make gains through large volume, you will need a lot more working capital with very lean profits initially. Having a high higher margin is very crucial when you are growing business so you can self–finance the growth of your business.
- The need for a good support team: – The support of a team comprising of professional accounting personals, coaches, lawyers, consultants, and banks play a vital role in uplifting the performance of the company. A great team will greatly improve the chances for success of any business.
- Portability of business: – It means that you can shift the location of your business with ease. This quality of the business brings you an additional advantage. All online businesses have this kind of feature.
- Satisfying the need of the masses: – This parameter ensures the longevity of the business. The products of this category of the business include milk, medicines, mobile data charging, and educations, etc.
- A large scope of value additions: – There are certain products and services, which have a greater scope of value additions, like convenient and customized delivery channels or providing a favorite point of sales. By such additions of value-added services, you can command a high price for the same product. For example, while running a taxi or cab service you may charge your price if you serve the lady customer by providing cab with lady driver or providing a newspaper on early morning cab calls.
So while choosing any business to starts with, you must check it with the above attributes. More matching to the above, more likely they will stand in the long run. You are unlikely to make money by panning for gold but are likely to make more money by selling pans. The fastest way to make a restaurant profitable not by having a good cook or great decor, but it is by attracting a starving crowd filled with money, You should first focus to establish yourself locally before expanding to a national or global arena.